NMDC had approached government of Karnataka to facilitate execution of lease deed and resumption of operations at Donimalai Mine. The resumption of mining at Donimalai will avoid further loss to National and State Exchequer apart from providing the much needed iron ore to the steel industry for the development of the state, NMDC said in an official statement.

In November 2018, the largest domestic iron ore miners had suspended operations at its seven-million-tonne-per-annum Donimalai mine following the Karnataka government’s decision to impose 80% premium on sales of iron ore a key steelmaking input. Since the mine estimayed to have contributed nearly 17% to NMDC's output in 2018-19 led to a slide in NMDC's dragged down state-run miner’s production and despatches.

The development is thus likely to come as a major relief to steelmakers in Karnataka and various stakeholders including investors and the mining fraternity.